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Synchronoss (SNCR) Registers a Bigger Fall Than the Market: Important Facts to Note

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Synchronoss (SNCR - Free Report) ended the recent trading session at $6.44, demonstrating a -2.87% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.5%. Meanwhile, the Dow experienced a drop of 0.38%, and the technology-dominated Nasdaq saw a decrease of 0.5%.

Prior to today's trading, shares of the mobile services company had gained 8.16% lagged the Computer and Technology sector's gain of 8.21% and outpaced the S&P 500's gain of 2.74%.

The investment community will be closely monitoring the performance of Synchronoss in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.31, marking a 219.23% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $42.96 million, showing steadiness compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.02 per share and revenue of $172.32 million, which would represent changes of -37.42% and -0.73%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Synchronoss. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Synchronoss currently has a Zacks Rank of #4 (Sell).

In the context of valuation, Synchronoss is at present trading with a Forward P/E ratio of 6.5. This represents a discount compared to its industry average Forward P/E of 31.31.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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